startupi

This session legislation passed in Brazil which is specifically aimed at professionals who work on the margins of formal employment. With the Individual Entrepreneur Law (EI), Brazilians can regulate their businesses in a simpler way than with the Micro Enterprise (ME) category. It offers a chance for diverse entrepreneurs to have their businesses — and their rights — recognized. However, a number of activities relating to the web and software are not included in the new regulations.

The Individual Entrepreneur Law was passed at the beginning of this month. Using this category for a business, it’s not necessary to hire accounting firms to manage the business accounts. Besides making some bureaucratic processes simpler and easier, the law also gives a small business the right to invoice with “symbolic” fees and taxes, and offers the right to a retirement pension. People in the Individual Entrepreneur category cannot bill more than R$36,000 a year (equivalent to approximately US$1,500 per month).

But for a number of professionals who work in digital spaces, such as social networks, or who produce websites or work as programmers, the law does not apply. Consulting is also not included. People in these categories must open businesses in the traditional way (ME: Micro Enterprise) or be hired as employees. The closest thing to an information worker that the law covers is “typist” (provided they do not plan or produce intellectual, cultural or artistic content).